A top advocacy priority for the PA Chamber was signed into law by Gov. Tom Wolf last week. Act 72 of 2018 (formerly S.B. 1056) reverses a ruling by the Dept. of Revenue that prohibited Pennsylvania taxpayers from taking advantage of 100 percent bonus depreciation when filing their corporate taxes; and also stripped away depreciation benefits in the recently enacted federal Tax Cuts & Jobs Act.
Act 72 removes a serious competitive disadvantage for the Commonwealth, and helps put Pennsylvania on a more level playing field with other states when working to attract jobs and capital. In late 2017, following the department’s decision to issue the ruling, the PA Chamber became a leading supporter of this important reform and championed it in the legislature, sending several communications to the House and Senate urging for its passage.
After the House unanimously approved the bill and sent it to the governor, PA Chamber President Gene Barr issued a statement commending lawmakers for their swift efforts to bring the Commonwealth more in line with the tax advantages offered in other states.
“At a time when we should be building on the tax reforms enacted on the federal level; the department’s policy change gave Pennsylvania the unfortunate distinction of being the only state in the nation to disallow any form of accelerated depreciation until an asset was disposed of or sold,” Barr said. “We commend the legislature for working quickly to address this issue – which will help to put Pennsylvania on a more level playing field with other states and improve the state’s overall competitiveness.”